Unilever sold olive oil to Central Food, which refused to pay on the ground the oil did not comply with Italian law.

Unilever claimed damages for breach of contract.

The question was referred to the European Court of Justice, whether the Directive precluded enforcement of the contract.

The European Court of Justice upheld Unilever's claim that the law could not be applied.

The Directive was a procedural bar to adopting national legislation.